I've seen this before...A decade ago, I saw the writing on the wall when I worked in yellow page advertising. Advertisers started asking really tough questions that I could not answer with certainty and transparency. It was not at the point where they started slashing budgets, but to the point were they were asking tough questions. Quite frankly, they had the right to ask these questions and I was quietly asking them to myself too. Questions like: "How many people are actually searching for my ads." "How many people are calling because of my ad?" There was one conversation with a customer that stuck with me and I could not shake how I felt while trying to provide value for him. His question was simple: "Why can't I have my ads on the west side of the city vs the whole county" We both knew that 95% of their customers come from the west side within 5 miles of his location. We both knew no one in their right mind travels 20 miles across town to go tanning. He was right. The problem was... I didn't offer a solution that could help him invest his ad dollars more wisely. All I offered was a blanketed solution with no tracking. Shortly after that conversation, I knew it was time to cut bait and get a head start in a newer advertising method before everyone else got started.
Luckily, I managed a PPC campaign on Google years before while working for an automotive warranty company. Back in those days, most clicks were .05 to .50 cents. It was a big deal to spend a .75 on a click and If I raised the bids to a dollar... I probably would have gotten fired. Today, these same terms are 100 times higher. Because I had experience, I knew I could answer all of the questions my yellow page clients had asked if I went into internet marketing. I knew I could provide reporting, call tracking and more more tracking. So... I jumped in head first and decided to learn everything I could about internet marketing. Fortunately, I have never stopped learning and reading about website marketing. Things change way too fast in the online marketing industry. A month away from internet marketing is probably like a decade away in yellow page advertising.
How my backstory ties into Television Commercial Advertising:
As a kid, one of my dreams was to work at a TV station. My uncle worked for one of the local stations and I thought he was one of the coolest people in the world. The station always treated him great. He got to see so many things before they showed us on TV. To me, that gave him magical powers. 20 years later... I fulfilled my childhood dream. I worked at a TV station and I was offering television advertising! I was having conversations about CPP (cost per point) and the value of :15 and 30's with clients. I worked with a great group of people at the station and advertisers had real budgets for TV advertising. In fact, they came with lots of 0's and commas.
There are so many wonderful, intelligent, hard working people in television that never see the front side of the camera. Plus, there are so many unspoken perks of working at TV station. You can meet TV personalities, watch the local news, live... in studio. You and shake the hands of the people who are in the commercials we see on TV. It was unlike anything this world has to offer in advertising.
Oddly enough, my television advertising clients had started asking the same tough questions I faced and had problems answering a decade ago. I couldn't answer them any differently than I could when I worked in yellow pages. I'd go home at night and I'd think to myself... are you kidding me?! the same questions!? I knew couldn't come back to a client and say... "Well, it fits your 18-54 demographic and the overnights showed a 2.3 rating across our 300 sq. mile broadcast area. So, of course it worked." Today, in the world of advertising, I know that gets you fired from a client. Clients want tracking. They want to know which ad get the best results. They want to know how many people actually wanted the commercial vs walking out of the room to grab something or fast forwarded through the commercial because they DVR'd it the night before. They don't want to pay for what they view as "wasted impressions". They want to know how many people visited their website. They want it all because they know they can get it from other mediums in advertising.
The good stuff... and the "Why":
I believe television advertising revenue will get shifted hard and fast from television stations and corporations because of the rise and acceptance of online video commercials. Trend setting consumers have already paved the way with their 4k SHD, smart, wifi, televisions that do not get a signal outside of their Hulu, netflix, Amazon Prime, or local channels. Cell companies have already updated and continue to update their networks, and Wifi is expected to be free everywhere we go. Some of the most talked about shows are not even available on regular TV you have to have a subscription to Netflix.
Unfortunately, with the powers of social media, blogs, and everyone in the advertising industry already witnessing yellow pages, radio, and print going through these changes... TV will be in for quite a shock and awe. I believe it will happen much faster for TV than it did with these other advertising methods. Heck, Yahoo streamed an NFL football game that no one else could air and the NFL is going back for more online streaming. Could you imagine that a few years ago?
The value of online video advertising is simple:
For the advertiser, online video commercials comes with tracking and targeting down to a few miles with any demo they want. Until now, we have not had that ability with commercials. Plus, you don't pay for "wasted impressions" heck, you don't pay if someone skips the ad.
For the viewers, you get personalization with recommendations with shows, movies, or advertisements that are applicable to you. (Hopefully, that will end me being forced to watch erectile dysfunction ads on TV) You can skip ads that you don't want to watch and go back to consuming your favorite show, movie, podcast, or funny cat video. Online video allows consumers to watch on a desktop, laptop, tablet, or smart phone. You can consume on the go or laying down. You are no longer restrained to sitting on a couch or laying in bed watching a giant box in the same spot for hours.
Some Supporting data:
Finally, online video is catching up to the high intensity fast paced world we live. A survey done by the highly regarded Nielsen shows that the 18-34 year old group who use streaming devices has risen 26% in May of 2015 compared to may 2014. That same age group reduced their radio and TV consumption by 8% from the year before.
According to BriteRoll 72% of agencies have said Online Video Advertising is as effective or more effective than TV advertising. Unfortunately, it will come at a cost to the television industry. They will have to adjust and reinvent themselves faster than any medium had to in the past while dealing with their world quickly becoming more fragmented radio.
Advertisers are now facing tough questions with television commercial budgets:How much do I cut from television ads?
How much do I keep in TV advertising?
Who can I call for online video advertising?
Luckily, I can help you with those questions and more.
Call me and I'll help.